IBERSOL Annual Report 2018

Consolidated Financial Statements b) Credit risk The main activity of the Group is carried out with sales paid in cash, or debit or credit card, so the Group has no significant credit risk concentrations. Regarding the customers, the risk is limited to the Catering business and sales of merchandise to franchisees representing less than 5% of the consolidated turnover. The Group has policies to ensure that credit sales are made to customers with an appropriate credit history. The Group has policies that limit the amount of credit that customers have access to. The Group’s cash and cash equivalents include mainly deposits resulting from cash provided by sales and its deposits in current accounts. These amounts excluded, the value of financial investments at December 31, 2018, is not significant, with the exception of the above mentioned Treasury Bonds of the Republic of Angola in the amount of 20,5 million euro, subject to country risk. Deposits and other financial investments are spread over several credit institutions; therefore there is not a concentration of these financial assets. The ratings of the major credit institutions where Ibersol group has its deposits on December 31, 2018 and 2017 are presented as follows: Year 2018 Year 2017 Agency Deposits Rating Deposits Rating Standard & Poor´s 1.155.092 A - A Standard & Poor´s 5.114.585 A- 1.232.955 A- Standard & Poor´s 2.799.113 BBB- 1.680.986 BBB+ Standard & Poor´s 16.836.985 BBB - BBB Standard & Poor´s 4.060.127 BBB- 7.031.172 BBB- Standard & Poor´s - BB- 5.302.808 BB- Standard & Poor´s - Baa2 4.484.806 Baa2 Moody's - Baa3 5.342.953 Baa3 Moody's 802.668 Ba1 - Ba1 Moody's - Ba3 1.117.848 Ba3 Moody's - B2 202.286 B2 Moody's 236.117 B3 - B3 Moody's 2.196.864 Caa2 1.444.112 Caa2 Não disponível (Angola) 3.545.545 n/a 4.041.568 n/a 236